Cirencester Friendly has announced that new business introductory commission rates in respect of its Income Assured Enhanced and My Earnings Insurance individual income protection contracts have been increased.
Income Assured Enhanced and My Earnings Insurance with guaranteed annual escalating premiums have both been increased to 200%, whilst My Earnings Insurance with guaranteed level premiums has been increased to 165%.
The decision was made to increase initial commission from the outset and remove renewal commission following adviser feedback. The earnings period remains unchanged at three years.
There has been no increase in premium rates.
David Macgregor, commercial director at Cirencester Friendly, said: “We rely solely on advisers to introduce new income protection business to the society and we want to make sure they are fairly rewarded for recommending Cirencester Friendly.
“In addition to these improved commission rate changes, we continue to work on developing opportunities for Advisers to meet the needs of their clients and have two further developments scheduled for release over the coming months.”
The Income Assured Enhanced contract, which was launched in 2017, follows the traditional ‘Holloway Principle’ which combines income replacement insurance with an electable option to build a capital sum payable at the maturity of the contract. As it contains a capital option the contract is classified as a retail investment.
My Earnings Insurance, launched in 2014 was the society’s first pure income protection contract. It provides a range of options allowing advisers to tailor the contract to the client’s needs. It is available through financial advisers as well as mortgage and general insurance brokers.